Mortgage Refinance Information can save you a lot of money. Doing your homework and researching mortgage refinance information and loan offers before applying will help you avoid costly mistakes. The first step to finding the right loan is learning about the mortgage industry and the different types of lenders. Here is mortgage refinancing information regarding lenders and the marketplace to help you avoid choosing the wrong type of lender when refinancing.
The mortgage industry is made up of two markets. There is the primary mortgage market and the secondary market. The primary mortgage market is the retail market made up of banks, credit unions, brokers, broker-banks, and other mortgage companies. The secondary market consists of investment companies and government backed organizations such as Fannie Mae and Freddie Mac that buy and sell mortgage debt for profit. You will be seeking mortgage refinance information in the primary market; but first a warning about banks, credit unions, and broker-banks.
When comparison shopping mortgage refinance information, avoid banks, credit unions, and mortgage broker-banks. Never take out a mortgage from one of these institutions, under any circumstance. The reason for never trusting a bank or broker-bank with your mortgage loan pertains to loopholes in the Real Estate Settlement Procedures Act (RESPA) that protects homeowners from the abuses of predatory mortgage lenders by requiring the disclosure of mortgage refinance information. When the RESPA legislation was making its way through the House of Representatives and the Senate, banks lobbied intensely to be excluded from any law requiring disclosure of mortgage refinance information regarding fees and markup. Millions of dollars changed hands and when RESPA was signed into law, lo and behold banks were exempt from the new mortgage refinance information disclosure laws.
This loophole in RESPA mortgage refinance information disclosure laws is why you should never seek mortgage refinance information from your bank, credit unions, or broker-banks. You may be wondering what a broker-bank is; mortgage broker-banks function identically like mortgage brokers except they close on mortgage loans in their own company names, functioning just like a bank. This allows them to exploit the loophole in RESPA like your bank. If you take out a mortgage from your bank or broker-bank, you will never know what the lender’s markup is or what fees they are charging; you will overpay for this mortgage loan, guaranteed. For more mortgage refinance information including how to avoid costly mistakes, register for a free mortgage refinance information guidebook.
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